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Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.

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Speaker 2: Stock Movers Report, your roundup of companies making moves in

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Speaker 2: the stock market, harnessing the power of Bloomberg Data.

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Speaker 3: Let's have a look at some of the socks on

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Speaker 3: the move today here in Europe. I'm Caroline Hepgat with

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Speaker 3: our Blueberg reporter Clove Malay. So I want to dive

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Speaker 3: into all of the various deals and earnings announcements, and

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Speaker 3: I think this is incredibly interesting. Schroeders one of the

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Speaker 3: best known names in the city of London, at least

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Speaker 3: one of the oldest, and now it's agreed to sell

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Speaker 3: itself to Nouvene. Yeah.

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Speaker 4: Absolutely see nuvin Is bang Schroeders in a nine point

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Speaker 4: nine billion pound deal in that will create one of

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Speaker 4: the world's biggest active asset managers. And so we saw

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Speaker 4: the shares really really jump this morning over up around

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Speaker 4: thirty percent at the start of trading this morning for Schroeders.

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Speaker 4: And this is a company that will manage two point

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Speaker 4: five trillion dollars in assets.

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Speaker 1: This is going to be a really, really big deal.

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Speaker 4: And so for Schroeders, this also marks the end of

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Speaker 4: almost two centuries of independence you just mentioned it's one

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Speaker 4: of the oldest names and it really is one of

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Speaker 4: the best known as well, and the Schroeder's brand will

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Speaker 4: still exist, so there's that as well. And it caps

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Speaker 4: what has been quite a tough time actually lately for

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Speaker 4: the company. Shares of really underperformed European peers like Amundi

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Speaker 4: and DWUS, and it's been facing quite a lot of

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Speaker 4: criticism from its relatively high cost base and also quite

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Speaker 4: a lot of weakness in its private markets business. So

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Speaker 4: this is going to be interesting to see how it

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Speaker 4: does within this kind of bigger structure. It's also saying

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Speaker 4: something a bit about the wider sector of the asset

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Speaker 4: management sector. BI analysts have said that the takeover really

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Speaker 4: underscores the structural cost pressures that are facing those active

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Speaker 4: fund managers and it really highlights that need for scale

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Speaker 4: for those companies. So that might mean that we'll see

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Speaker 4: more consolidation going forward within that sector.

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Speaker 3: So in terms of what else is happening, investors struggling

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Speaker 3: to see what comes next. In terms of artificial intelligence,

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Speaker 3: that hasn't stopped eslaw. Lookxotica, what about their glasses.

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Speaker 4: Yeah, we've talked so much about AI losers lately, but

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Speaker 4: Exotica would would it would be considered very much an

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Speaker 4: AI winner. So it's partnership with Meta for AI powered

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Speaker 4: glasses is driving major, major growth for that company. So

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Speaker 4: sales in the fourth quarter were way ahead of expectations

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Speaker 4: and that was mostly due to this massive demand for

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Speaker 4: those AI powered glasses. And Slow was also trying in

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Speaker 4: that statement today to last night rather to reassure investors

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Speaker 4: that scaling up that production of those glasses wouldn't hurt.

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Speaker 1: Margins too much or you know, or in the long run.

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Speaker 4: But because that was one of the things really that

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Speaker 4: investors starting to get concerned about, and we are talking

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Speaker 4: about our major step up in capacity. Meta wants to

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Speaker 4: double production capacity to twenty million units or more this year.

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Speaker 4: So Slore will kind of continue to be a under

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Speaker 4: pressure going forward to reassure continue reassuring on margins. But

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Speaker 4: in the meantime, the sales are doing great and there's

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Speaker 4: a lot of demand for those glasses.

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Speaker 3: Yeah, although and a big debate about privacy about whether

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Speaker 3: you can see the light on them, why you're being

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Speaker 3: recorded when you're in a public place. In terms of

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Speaker 3: other stories that we're thinking about, Mercedes still have the

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Speaker 3: drive to try to succeed in China, but they've had

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Speaker 3: a bit of a tough time Mercedies.

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Speaker 4: Spence, Yeah, they have, and the car sector is not

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Speaker 4: out of the woods just yet, it seems.

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Speaker 3: So.

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Speaker 4: Mercedes said this morning that margins will remain under pressure

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Speaker 4: this year because it continues to deal with the same

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Speaker 4: things that it has been dealing with for months, which

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Speaker 4: is tariffs of course, but in also this competition from

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Speaker 4: China and from those Chinese rivals. So it's said that

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Speaker 4: it would cut costs and reduce production, especially abroad given

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Speaker 4: that there's labor production agreements in a protection agreement in Germany,

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Speaker 4: so cutting those.

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Speaker 1: Costs to mitigate some of that impact.

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Speaker 4: But this really points to another potentially very difficult year

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Speaker 4: for Mercedes and for the rest of that car making sector.

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Speaker 4: We've seen Volkswagen and BMW also in the red this morning,

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Speaker 4: being dragged down by those Mercedes results, and this wally

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Speaker 4: be going to be a test of that strategy for Mercedes,

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Speaker 4: which is of it wants to kind of go more upmarket,

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Speaker 4: cut back on cheaper, more entry level models, but which

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Speaker 4: means of course more revenue per car, but also leaves

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Speaker 4: it really exposed to weaker demand for those fancy cars,

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Speaker 4: so we'll be looking at for that, and China still

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Speaker 4: remains a big question mark as well.

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Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with

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Speaker 2: us throughout the day for the latest roundup of companies

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